GSK Australia reports 2017 results to ASIC

30 April 2018

GlaxoSmithKline (GSK) Australia has reported its 2017 results to the Australian Securities and Investment Commission (ASIC) for its pharmaceuticals and vaccines business, as well as GSK Consumer Healthcare (a joint venture with Novartis in 2017) and ViiV (a joint venture with Pfizer and Shionogi focused on HIV).

2017 – the global context

Emma Walmsley was appointed Global CEO in April 2017 and set out three long-term priorities for the company: Innovation, Performance and Trust. These priorities enable the company to focus on delivering improved performance and better returns for shareholders over both the short and long term, as well as a broader societal contribution.

Pharmaceuticals and vaccines

Operating under GlaxoSmithKline Australia Pty Ltd, GSK’s pharmaceuticals and vaccinesbusiness reported revenue of approximately $829 million in 2017 and a profit before tax of approximately $22 million.

GSK strengthened its leadership in respiratory medicines in 2017 with the launch of a new medicine and growth across the respiratory portfolio.

GSK is a primary supplier of vaccines for Australia and the largest supplier of childhood vaccines to the National Immunisation Program. In 2017, GSK increased sales of its vaccines to the private market, with increased supply of its recently launched meningococcal vaccines.

Exports from its manufacturing facility in Boronia continued to represent a significant proportion of GSK's revenue in Australia.

Aligned to the company’s global strategy, GSK’s focus in 2017 and into 2018 is to realise the potential within the research & development pipeline, through registration of new medicines and vaccines and commercially successful product launches.

Anne Belcher, GSK Australia VP and General Manager said, "Bringing innovation and new medicines to Australians is how we can have the biggest impact as a healthcare company. In 2017 we have seen our newer medicines bringing significant benefits to people living with debilitating respiratory conditions, and our newer vaccines are helping protect families from potentially devastating diseases. As well as investing in Research and Development, we are playing an active role in scrutinising the processes that govern access to new medicines and vaccines in Australia, to make sure Australians continue to benefit from this innovation."

GSK Consumer Healthcare Australia

In 2017, GSK Consumer Healthcare Australia was the prime distributor for the combined GSK-Novartis Consumer Healthcare portfolio in Australia following the completion of the joint venture between the two companies in 2016.

In 2017, GSK Consumer Healthcare reported revenue of $406 million and profit before tax of $20 million. The Panadol franchise continues to be the leading pain relief brand. This is complemented by GSK’s Voltaren franchise for topical pain.

Theresa Agnew, Acting General Manager ANZ, GSK Consumer Healthcare said "Despite a challenging year in Consumer Healthcare, there are trends, such as an aging population and the self-care movement, creating opportunities for industry growth. Category and product innovation can help recognise these opportunities and improve health outcomes for consumers.

"As a leader in pain management and specialist oral health with expertise in respiratory we’re committed to bringing consumer-focussed innovation to Australians that also drives industry growth," said Agnew.

ViiV Healthcare Australia Pty Ltd

In 2017, ViiV Healthcare reported sales revenue of $90 million and profit before tax of $1.4 million. Growth was driven by the dolutegravir-based regimens. This was achieved despite price erosion associated with generic competition of older medicines.

Michael Grant, Country Manager ViiV Healthcare Australia said, "Medical innovation has significantly changed the treatment of HIV in the last 20 years and is improving outcomes for people living with long-term infection. We are incredibly proud of ViiV Healthcare’s leadership in developing effective and well-tolerated medicines and improving HIV treatments will continue to be our priority.

"Our mission is to leave no person living with HIV (PLHIV) anywhere in the world left behind. To achieve that, we are committed to working hand-in-hand with all stakeholders, including the community representing people living with or affected by HIV. In 2017 we provided unrestricted grants to the community for projects that aimed to address stigma and discrimination, improve rates of testing and care and improve quality of life for PLHIV."

At the end of 2017, ViiV had provided compassionate access to medicines free of charge for 510 PLHIV who are not eligible for medicines under the PBS.

ViiV Healthcare was established in 2009 by GSK and Pfizer as a joint venture focused solely on developing treatments for people living with HIV. Shionogi joined in 2012. GSK owns 78% per cent of ViiV.

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